Debt restructuring talks underway with IMF, India and China (President of Sri Lanka)

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Sri Lanka has started debt restructuring talks with the IMF, India and China, President Ranil Wickremesinghe said on Sunday, confident that if talks progress in a “systematic way”, the country will overcome its worst crisis. economic.

Addressing a rally in Siyambalanduwa district, Wickremesinghe said talks had also started with private creditors on debt restructuring.

“For the first time yesterday, we started discussions with the IMF, China, Japan and India on reducing our debt burden,” he said.

“It will be difficult for us to repay the debt, but we still need to find ways to ease our debt burden. We are facing a situation where we are unable to meet the interest payments. But I am hopeful that if our discussions could continue in a systematic way, we would be able to resolve our issues,” he said.

The president said he spoke to China’s finance minister while Sri Lanka’s finance minister Shehan Semasinghe began talks with India on debt restructuring in Washington on Saturday.

He said funds from the World Bank, Asian Development Bank, US and EU were used to pay for the island’s imports of medicine and fertilizer.

Sri Lanka reached a service-level agreement with the IMF at the end of August for a 4-year $2.9 billion bailout. Its completion depends on assurances from Sri Lanka’s creditors on debt restructuring.

The government appointed international legal and debt advisers for debt restructuring in May after the country, for the first time in history, declared default on its international debt.

Sri Lanka is on the verge of bankruptcy and has suspended repayment of its $51 billion foreign debt, of which it must repay $28 billion by 2027.

(This story has not been edited by the Devdiscourse team and is auto-generated from a syndicated feed.)

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